Broken Quest and unknown quest item?

[Wycked Goodbrew]

The Penance, to retrieve your iksar starter item in order to progress through the quests, seems to be broken for Shaman. I have told Hierophant Zand that I "do not have my cudgel" (which is the only sentence I can get him to respond to) and he just says something like "Glad to hear it. Continue on the path of pain. Suffering awaits."

No book, no "report to the Toilmaster", no nothing.

Also, while in the East Cabilis sewers, I was killing the Iksar Outcast and near him spawns "Decaying skeleton". (not to be confused with "a decaying skeleton")

He dropped something I've never seen before, and can't find on the wiki anywhere, but the item is "Bone Chips", exactly the same as the normal chips for quests / necro pets, but this one is not stackable, and is NO TRADE and LORE. Any ideas?